BP p.l.c. (BP) AI Stock Analysis

• Market Cap: £66.62B
• Dividend Yield: 5.74%
• Average Volume (3M): 34.63M
• Price to Earnings (P/E): 165.5
• Beta (1Y): 1.05
• Revenue Growth: -9.96%
• EPS Growth: -92.38%
• Country: UK
• Employees: 100,500
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.11
• Shares Outstanding: 15,810,079,000
• 10 Day Avg. Volume: 34,467,998
• 30 Day Avg. Volume: 34,630,679
• PEG Ratio: -2.17
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 6.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £441.57
• Price Target Upside: 3.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 66 Neutral
• Price Target: 4.00p ▼(-99.06% Downside)

BP's overall stock score reflects a combination of strong operational performance and strategic achievements, as highlighted in the earnings call, offset by financial challenges such as a high P/E ratio and net loss. Technical indicators suggest caution due to overbought conditions, while the dividend yield offers some support. The company's ability to navigate a challenging market environment and focus on long-term shareholder value is a positive factor.

Positive Factors

Financial Performance

BP's reported operating profit in the Gas & low carbon energy division was 19% above consensus, driven by stronger-than-expected gas marketing and trading results.

Shareholder Returns

BP announced a 4% increase in dividends per share, aligning with market expectations and indicating confidence in future financial performance.

Negative Factors

Debt Levels

BP’s economic net debt, including hybrid bonds and leases, keeps climbing to now equate to over 65% of BP’s market cap.

Execution Risks

Execution risks on BP’s asset disposal plans are borne by shareholders without a corresponding valuation discount.

BP p.l.c. Business Overview & Revenue Model

Company Description

BP p.l.c. engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power, and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen and carbon capture and storage. The company is also involved in the convenience and mobility business, which manages the sale of fuels to retail customers, convenience products, aviation fuels, and Castrol lubricants; and refining and trading of oil products, as well as operation of electric vehicle charging facilities. In addition, it produces and refines oil and gas; and invests in upstream, downstream, and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation, and power and storage areas. The company was founded in 1908 and is headquartered in London, the United Kingdom.

How the Company Makes Money

BP generates revenue primarily through the exploration, extraction, and sale of oil and natural gas. This involves upstream activities such as the discovery and extraction of crude oil and natural gas, followed by downstream operations which include refining crude oil into usable products such as gasoline, diesel, and jet fuel, and distributing these products to consumers. Additionally, BP earns revenue through its petrochemicals segment, which produces chemicals used in a variety of industrial applications. The company also engages in trading activities related to oil, gas, and power markets. BP's earnings are further supplemented by its investments in renewable energy projects, including wind and solar power, as part of its efforts to diversify its energy portfolio and address climate change. Strategic partnerships and collaborations with other energy companies and technological firms also play a significant role in enhancing BP's operational capabilities and expanding its market reach.

BP p.l.c. Financial Statement Overview

Summary

BP's financial performance shows a mixed picture. Despite a healthy gross profit margin of 15.43% and stable balance sheet with a debt-to-equity ratio of 1.22, concerns arise from a negative net profit margin and a slight revenue decline. However, strong cash flow generation indicates liquidity resilience.

Income Statement

The income statement shows moderate performance for BP. Gross profit margin is healthy at approximately 15.43% for the TTM (Trailing-Twelve-Months), and the EBIT margin is about 8.40%, indicating decent operational efficiency. However, the net profit margin is negative due to a reported net loss, which is a concern. Revenue has dipped slightly from the previous year, indicating a challenging market environment.

Balance Sheet

BP's balance sheet reflects a stable equity position with a debt-to-equity ratio of 1.22 for the TTM, suggesting manageable leverage. The equity ratio is 20.69%, indicating a solid proportion of equity financing. Despite the decline in equity from previous years, the company maintains a strong asset base.

Cash Flow

The cash flow statement indicates positive free cash flow generation, albeit with a decline in free cash flow compared to prior periods. The operating cash flow to net income ratio is negative due to the net loss, but operating cash flow remains robust. BP's ability to generate substantial cash from operations is a positive indicator of liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.21B	189.19B	208.35B	241.39B	157.74B	105.94B
Gross Profit	28.89B	30.24B	64.06B	55.10B	22.86B	10.18B
EBITDA	26.99B	27.98B	43.50B	59.47B	32.55B	14.54B
Net Income	-1.20B	381.00M	15.24B	-1.36B	7.57B	-20.73B
Balance Sheet
Total Assets	218.01B	282.23B	280.29B	288.12B	287.27B	267.65B
Cash, Cash Equivalents and Short-Term Investments	26.38B	34.52B	28.59B	29.77B	30.96B	29.53B
Total Debt	55.11B	71.55B	63.08B	55.49B	69.79B	81.93B
Total Liabilities	157.62B	203.91B	194.80B	205.13B	196.83B	182.09B
Stockholders Equity	45.10B	59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow
Free Cash Flow	10.19B	12.00B	17.75B	28.86B	12.72B	-144.00M
Operating Cash Flow	25.12B	27.30B	32.04B	40.93B	23.61B	12.16B
Investing Cash Flow	-12.66B	-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
Financing Cash Flow	-9.99B	-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP p.l.c. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 425.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Positive. The current price of 425.75 is above the 20-day moving average (MA) of 404.73, above the 50-day MA of 386.63, and above the 200-day MA of 389.11, indicating a bullish trend. The MACD of 9.58 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 87.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BP.

BP p.l.c. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENOG	81 Outperform	£1.69B	11.41	17.50%	5.68%	-9.80%	-1.98%
SEPL	78 Outperform	£1.62B	14.90	7.92%	4.12%	118.04%	65.66%
SHEL	73 Outperform	£159.43B	15.78	7.54%	4.06%	-8.55%	-22.62%
HBR	70 Neutral	£3.44B	21.62	-2.87%	7.98%	29.33%	―
ITH	67 Neutral	£2.89B	15.84	-5.65%	15.22%	1.04%	-156.59%
Sector *	66 Neutral	$15.10B	10.40	7.41%	5.57%	4.52%	-70.52%
BP	66 Neutral	£66.62B	165.52	0.82%	5.74%	-9.96%	-92.38%